DIAMOND HILL INVESTMENT GROUP, INC. REPORTS 2025 FINANCIAL RESULTS

Rhea-AI Summary

Diamond Hill Investment Group (Nasdaq: DHIL) reported 2025 results with revenue $147.1M, net income $48.8M and diluted EPS $17.91. Total AUM/AUA fell to $31.0B from $31.9B as net client outflows were $2.7B. Adjusted net operating profit margin was 29% (GAAP 25%). The company returned $44.1M to shareholders and disclosed transaction-related expenses of $2.9M tied to its pending merger with First Eagle.

Management said the First Eagle partnership is expected to create long-term value and strengthen the combined franchise.

Positive

• Net income increased to $48.8M (+13% year-over-year)
• Diluted EPS rose to $17.91 (+14% year-over-year)
• Net investment income doubled to $30.5M (2025 vs 2024)
• Shareholder returns of $44.1M (share repurchases $16.9M; dividend $27.2M)
• Adjusted net operating profit margin remained healthy at 29%

Negative

• Total AUM and AUA declined to $31.0B from $31.9B
• Net client outflows were $2.7B in 2025 (vs $0.3B in 2024)
• Revenue decreased 3% to $147.1M year-over-year
• GAAP net operating profit margin fell to 25% from 29% in 2024
• Adjusted diluted EPS fell to $11.56 from $12.92 (non-GAAP)

Key Figures

Revenue: $147.1 million Net operating margin: 25% Adj. net operating margin: 29% +5 more

8 metrics

Revenue $147.1 million Full year 2025 vs $151.1 million in 2024

Net operating margin 25% Full year 2025 vs 29% in 2024

Adj. net operating margin 29% Full year 2025 vs 32% in 2024

Net income to common $48.8 million Full year 2025 vs $43.2 million in 2024

Diluted EPS $17.91 Full year 2025 vs $15.66 in 2024

Adj. diluted EPS $11.56 Full year 2025 vs $12.92 in 2024

Total AUM/AUA $30.962 billion End of 2025 vs $31.925 billion at end of 2024

Net client outflows $2.7 billion Full year 2025 vs $0.3 billion net outflows in 2024

Market Reality Check

Price: $171.36 Vol: Volume 14,853 is below th...

low vol

$171.36 Last Close

Volume Volume 14,853 is below the 20-day average of 25,122, suggesting subdued trading interest ahead of this earnings release. low

Technical Shares at $171.79 are trading above the 200-day MA of $147.34 and sit close to the 52-week high of $172.45.

Peers on Argus

DHIL was up 0.09% while peers were mixed: JRI -0.76%, MVF +0.28%, SOR -0.10%, FF...

DHIL was up 0.09% while peers were mixed: JRI -0.76%, MVF +0.28%, SOR -0.10%, FFA +0.32%, SCM +0.38%, indicating a stock-specific backdrop rather than a broad asset-management move.

Historical Context

3 past events · Latest: Dec 11 (Positive)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Dec 11	Acquisition announcement	Positive	+44.5%	All-cash buyout at <b>$175</b> per share with ~<b>49%</b> premium.
Oct 30	Earnings and dividends	Positive	-2.9%	Q3 2025 results with dividends and net inflows but shares fell.
Oct 29	Board appointment	Neutral	-2.9%	Added experienced director to board and key committees.

Pattern Detected

Recent news has been dominated by the all-cash acquisition at $175 per share; earnings and governance updates showed more muted or mixed stock reactions.

Recent Company History

Over the last few months, Diamond Hill’s trajectory has been defined by its pending acquisition by First Eagle at $175 per share, announced on Dec 11, 2025 with a strong positive price reaction. Subsequent Q3 2025 earnings and dividend actions on Oct 30, 2025 saw a modest negative move, while the Oct 29, 2025 board appointment was accompanied by a similar decline. Today’s full-year 2025 results arrive against this merger-driven valuation backdrop.

Market Pulse Summary

This announcement details full-year 2025 results with revenue of $147.1M, net income to common share...

Analysis

This announcement details full-year 2025 results with revenue of $147.1M, net income to common shareholders of $48.8M, and diluted EPS of $17.91, alongside lower operating and adjusted margins. AUM/AUA ended at $30.962B with net client outflows of $2.7B. Against the backdrop of the pending $175-per-share cash merger with First Eagle, investors may watch flows, margins, and AUM trends in subsequent updates.

Key Terms

assets under management, assets under advisement, non-GAAP, deferred compensation liability, +3 more

7 terms

assets under management financial

"Assets under management ("AUM") and assets under advisement ("AUA") combined were $31.0 billion"

Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

assets under advisement financial

"Assets under management ("AUM") and assets under advisement ("AUA") combined were $31.0 billion"

Assets under advisement are the total value of investments for which a firm provides guidance or recommendations but does not have the authority to make trades or directly manage the money. Think of it like a paid consultant who advises on what to do with a homeowner’s portfolio but leaves final decisions and day-to-day control to the homeowner; for investors this metric shows a firm's market influence and potential for future fee growth, but those assets may be less sticky than funds the firm actually manages.

non-GAAP financial

"the Company is providing certain financial measures that are based on methodologies other than GAAP ("non-GAAP")"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

deferred compensation liability financial

"impact of market movements on the deferred compensation liability and related economic hedges"

A deferred compensation liability is a company’s recorded promise to pay employees or executives for work already done at a later date, such as bonuses, pensions, or stock-based pay. It matters to investors because it represents a real future cash outflow and a claim on the company’s resources—similar to owing someone a paycheck you’ve put aside—and can affect a firm’s reported profits, cash position, and financial health over time.

economic hedge financial

"investments designated as an economic hedge against the related liability"

A economic hedge is an action or investment designed to reduce the financial impact of broad economic changes—such as inflation, interest-rate moves, currency swings, or a drop in demand—on a portfolio or business. Think of it like buying insurance or carrying an umbrella: it may cost something up front but helps protect the value of investments and smooth returns when the economic weather turns unfavorable, making outcomes more predictable for investors.

non-operating income financial

"non-operating income or loss items helps readers understand the Company's core operating results"

Non-operating income is money a company earns or loses from activities outside its main business — for example interest, investment gains or losses, and one-time sales of assets. Investors watch it because it can inflate or mask the health of the core business: think of it as a shop owner’s extra income from renting out a back room rather than from selling products, which can boost short-term profits but may not reflect sustainable performance.

effective tax rates financial

"resulted in the overall non-GAAP effective tax rates of 26.9% for 2025"

The effective tax rate is the share of a company’s pre-tax profits that it actually pays in taxes, like the slice of a pie taken by tax authorities from its earnings. Investors watch it because it shows how much profit a business keeps after taxes, affects cash available for dividends, growth or debt repayment, and reveals whether a company pays higher or lower taxes than peers due to rules, losses, or one-time items.

AI-generated analysis. Not financial advice.

COLUMBUS, Ohio, Feb. 26, 2026 /PRNewswire/ -- Diamond Hill Investment Group, Inc. (Nasdaq: DHIL) today reported financial results for the fourth quarter and year ended December 31, 2025.

The following are selected highlights for the year ended December 31, 2025:

• Assets under management ("AUM") and assets under advisement ("AUA") combined were $31.0 billion, compared to $31.9 billion as of December 31, 2024.
• Average AUM and AUA combined were 31.8 billion, compared to $31.6 billion during 2024.
• Net client outflows were $2.7 billion, compared to $0.3 billion of net outflows during 2024.
• Revenue was $147.1 million, compared to $151.1 million in 2024.
• Net operating profit margin was 25% in 2025, compared to 29% in 2024, respectively.
• Adjusted net operating profit margin¹ was 29% in 2025 compared to 32% in 2024.
• Transaction-related expenses of $2.9 million associated with the Company's pending merger with First Eagle Investment Management, LLC ("First Eagle") reduced net operating profit margin and adjusted net operating profit margin by approximately 2 percentage points year-over-year.
• Net investment income was $30.5 million in 2025, compared to net investment income of $15.1 million in 2024.
• Net income attributable to common shareholders was $48.8 million, compared to $43.2 million in 2024.
• Earnings per share attributable to common shareholders - diluted was $17.91, compared to $15.66 in 2024.
• Adjusted earnings per share attributable to common shareholders - diluted² was $11.56, compared to $12.92 in 2024.
• The Company returned approximately $44.1 million to its shareholders - $16.9 million through the repurchase of 120,081 common shares and $27.2 million through a dividend of $10.00 per common share.

The fourth quarter was punctuated with the announcement of our partnership with First Eagle. "This partnership is a testament to the strength and resilience of our business and delivers immediate value to our shareholders," said Heather Brilliant, CEO of Diamond Hill. "Joining First Eagle, whose 160-year history reflects a deep commitment to client outcomes, is expected to position Diamond Hill for continued success over the long term. We are incredibly proud of what our team has accomplished and look forward to building an even stronger future as part of First Eagle."

1 Adjusts the financial measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP") for the impact of market movements on the deferred compensation liability and related economic hedges, and the impact of any mutual funds the Company consolidates.  See the reconciliation to the comparable GAAP financial measure at the end of this earnings release.
2 Adjusts the financial measure calculated in accordance with GAAP for the impact of any mutual funds the Company consolidates and investment income related to certain other investments.  See the reconciliation to the comparable GAAP financial measure at the end of this earnings release.

 

Selected Income Statement Data
		Three Months Ended December 31,										Year Ended December 31,
		2025				2024				% Change		2025				2024				% Change
Revenue		$	36,553			$	39,121			(7) %		$	147,098			$	151,095			(3) %
Compensation and related costs, excluding deferred compensation expense			18,223				18,602			(2) %			72,467				74,589			(3) %
Deferred compensation expense			1,967				204			864 %			6,095				4,776			28 %
Other expenses			10,185				7,076			44 %			31,800				27,838			14 %
Total operating expenses			30,375				25,882			17 %			110,362				107,203			3 %
Net operating income			6,178				13,239			(53) %			36,736				43,892			(16) %
Investment income (loss), net			6,377				(3,261)			NM			30,545				15,119			102 %
Net income before taxes			12,555				9,978			26 %			67,281				59,011			14 %
Income tax expense			(3,292)				(2,586)			27 %			(17,921)				(15,833)			13 %
Net income			9,263				7,392			25 %			49,360				43,178			14 %
Net income attributable to redeemable noncontrolling interest			15				—			NM			(598)				—			NM
Net income attributable to common shareholders		$	9,278			$	7,392			26 %		$	48,762			$	43,178			13 %
Earnings per share attributable to common shareholders - diluted		$	3.41			$	2.73			25 %		$	17.91			$	15.66			14 %

 

Selected Assets Under Management and Assets Under Advisement Data
		Change in AUM and AUA
		For the Year Ended December 31,
(in millions)		2025				2024
AUM at beginning of the year		$	30,012			$	27,418
Net cash inflows (outflows)
Proprietary Funds			(613)				726
Separately managed accounts			(1,341)				(1,269)
Collective investment trusts			(306)				403
Other pooled vehicles			(481)				(149)
			(2,741)				(289)
Net market appreciation and income			2,111				2,883
Increase (decrease) during the year			(630)				2,594
AUM at end of the year			29,382				30,012
AUA at end of the year			1,580				1,913
Total AUM and AUA at end of year		$	30,962			$	31,925
Average AUM during the year		$	30,039			$	29,718
Average AUA during the year			1,797				1,892
Total Average AUM and AUA during the year		$	31,836			$	31,610
		Net Cash Inflows (Outflows) Further Breakdown
		For the Year Ended December 31,
(in millions)		2025				2024
Net cash inflows (outflows)
Equity		$	(5,031)			$	(2,544)
Fixed Income			2,290				2,255
		$	(2,741)			$	(289)

About Diamond Hill:

Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment. An independent active asset manager with significant employee ownership, Diamond Hill's investment strategies include differentiated U.S. and international equity, alternative long-short equity and fixed income.

Non-GAAP Financial Measures and Reconciliation

As supplemental information, the Company is providing certain financial measures that are based on methodologies other than GAAP ("non-GAAP").  Management believes the non-GAAP financial measures below are useful measures of the Company's core business activities, are important metrics in estimating the value of an asset management business, and help facilitate comparisons to Company operating performance across periods.  These non-GAAP financial measures are presented for supplemental informational purposes only, should not be used as a substitute for financial measures calculated in accordance with GAAP and may be calculated differently from similarly titled non-GAAP measures used by other companies.  The following schedules reconcile the differences between financial measures calculated in accordance with GAAP and non-GAAP financial measures for 2025 and 2024. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, as well as the Company's condensed consolidated financial statements and related notes  in its annual report on Form 10-K for the year ended December 31, 2025. 

		Year Ended December 31, 2025
(in thousands, except percentages and per share data)		Total operating expenses				Net operating  income				Total non- operating income (loss)				Income tax expense(4)				Net income attributable to common shareholders				Earnings per share attributable to common shareholders - diluted				Net operating profit margin
GAAP Basis		$	110,362			$	36,736			$	30,545			$	17,921			$	48,762			$	17.91				25	%
Non-GAAP Adjustments:
Deferred compensation liability(1)			(6,095)				6,095				(6,095)				—				—				—				4	%
Consolidated Funds(2)			—				215				(3,623)				(755)				(2,055)				(0.75)				—
Other investment income(3)			—				—				(20,827)				(5,597)				(15,230)				(5.60)				—
Adjusted Non-GAAP basis		$	104,267			$	43,046			$	—			$	11,569			$	31,477			$	11.56				29	%
		Year Ended December 31, 2024
(in thousands, except percentages and per share data)		Total operating expenses				Net operating income				Total non- operating income (loss)				Income tax expense(4)				Net income attributable to common shareholders				Earnings per share attributable to common shareholders - diluted				Net operating profit margin
GAAP Basis		$	107,203			$	43,892			$	15,119			$	15,833			$	43,178			$	15.66				29	%
Non-GAAP Adjustments:
Deferred compensation liability (1)			(4,776)				4,776				(4,776)				—				—				—				3	%
Consolidated Funds(2)			—				28				199				61				165				0.06				—
Other investment income(3)			—				—				(10,542)				(2,825)				(7,717)				(2.80)				—
Adjusted Non-GAAP basis		$	102,427			$	48,696			$	—			$	13,069			$	35,626			$	12.92				32	%

(1) This non-GAAP adjustment removes the compensation expense resulting from market valuation changes in the Company's deferred compensation plans' liability and the related net gains/losses on investments designated as an economic hedge against the related liability. Amounts deferred under the deferred compensation plans are adjusted for appreciation/depreciation of investments chosen by participants.  The Company believes it is useful to offset the non-operating investment income or loss realized on the hedges against the related compensation expense and remove the net impact to help readers understand the Company's core operating results and to improve comparability from period to period.

(2) This non-GAAP adjustment removes the impact that the consolidation of majority owned mutual funds has on the Company's GAAP consolidated statements of income.  Specifically, the Company adds back the operating expenses and subtracts the investment income of the mutual funds the Company consolidates.  The adjustment to net operating income represents the operating expenses of the consolidated mutual funds, net of the elimination of related management and administrative fees.  The adjustment to net income attributable to common shareholders represents the net income of the consolidated mutual funds, net of redeemable non-controlling interests.  The Company believes removing the impact of the consolidated mutual funds helps readers understand its core operating results and improves comparability from period to period.

(3) This non-GAAP adjustment represents the net gains or losses earned on the Company's non-consolidated investment portfolio that are not designated as economic hedges of the Company's deferred compensation plans' liability, non-consolidated seed investments, and other investments.  The Company believes adjusting for these non-operating income or loss items helps readers understand the Company's core operating results and improves comparability from period to period.

(4) The income tax expense impacts were calculated and resulted in the overall non-GAAP effective tax rates of  26.9% for 2025 and 26.8% for 2024.

The Company does not recommend that investors consider non-GAAP financial measures alone, or as a substitute for, financial information prepared in accordance with GAAP.

Cautionary Note Regarding Forward-Looking Statements

Throughout this press release, the Company may make "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, as amended (the "PSLR Act"), Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Such statements are provided under the "safe harbor" protection of the PSLR Act of 1995.  Forward-looking statements include, but are not limited to, statements regarding anticipated operating results, prospects and levels of AUM or AUA, technological developments, economic trends (including interest rates and market volatility), expected transactions and similar matters. The words "may," "believe," "expect," "anticipate," "target," "goal," "project," "estimate," "guidance," "forecast," "outlook," "would," "will," "continue," "likely," "should," "hope," "seek," "plan," "intend," and variations of such words and similar expressions identify forward-looking statements.  Similarly, descriptions of the Company's objectives, strategies, plans, goals, or targets are also forward-looking statements.  Forward-looking statements are based on the Company's expectations at the time such statements are made, speak only as of the dates they are made and are susceptible to a number of risks, uncertainties and other factors.  While the Company believes that the assumptions underlying its forward-looking statements are reasonable, investors are cautioned that any of the assumptions could prove to be inaccurate and, accordingly, the Company's actual results and experiences may differ materially from the anticipated results or other expectations expressed in its forward-looking statements.

Factors that could cause the Company's actual results or experiences to differ materially from those expressed or implied by the forward-looking statements are discussed under Part I, Item 1A (Risk Factors) and elsewhere in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025.  These factors include, but are not limited to: (i) declines or volatility in the Company's AUM or AUA, whether due to market conditions, investment performance, client withdrawals, asset allocation decisions, or otherwise; (ii) the loss, renegotiation, non-renewal, or termination of investment advisory or administration agreements, including as a result of the pending merger or client consent requirements; (iii) risks related to, or the failure to consummate, the proposed acquisition of the Company by First Eagle Investment Management, LLC, including the failure to obtain required approvals or client consents, delays in completion, transaction-related costs, restrictions on operations prior to closing, disruption to business relationships, shareholder litigation, or failure to realize anticipated benefits; (iv) damage to the Company's reputation or adverse public perception; (v) failure to comply with investment guidelines, fiduciary obligations, regulatory requirements, or other contractual obligations; (vi) intense competition within the investment management industry, including from firms with greater resources or lower-fee or passive investment offerings; (vii) industry trends toward lower fee products, passive strategies, and model portfolio arrangements that may adversely impact revenues; (viii) adverse legal, regulatory, tax, or accounting developments or increased compliance costs; (ix) cybersecurity incidents, technology failures, or disruptions involving the Company or third-party service providers; (x) operational risks, including errors, systems interruptions, employee misconduct, or inadequate risk management controls; (xi) the Company's ability to adapt to technological change, including the effective and responsible development and use of artificial intelligence ("AI") and compliance with evolving AI-related regulations; (xii) losses on the Company's investments or fluctuations in investment income; (xiii) limitations on access to capital or increased costs of financing; (xiv) losses or liabilities not covered by insurance; (xv) adverse changes in interest rates, inflation, credit conditions, or capital markets; (xvi) changes in domestic or global economic, political, or geopolitical conditions, including political uncertainty and economic nationalism; (xvii) the effects of natural disasters, pandemics, or other catastrophic or unpredictable events; and (xviii) other risks and uncertainties described from time to time in the Company's filings with the U.S. Securities and Exchange Commission.

In light of the significant uncertainties in forward-looking statements, the inclusion of such information should not be regarded as a representation by the Company or any other person that its expectations, objectives and plans will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company and speak only as of the date hereof. Readers are cautioned not to place undue reliance on forward-looking statements. New risks and uncertainties arise from time to time, and factors that the Company currently deems immaterial may become material, and it is impossible for the Company to predict these events or how they may affect it.  The Company assumes no obligation to update any forward-looking statements after the date they are made, whether as a result of new information, future events or developments or otherwise, except as required by law, although it may do so from time to time.  The Company does not endorse any projections regarding future performance that may be made by third parties.

 

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SOURCE Diamond Hill Investment Group, Inc.

FAQ

What were Diamond Hill (DHIL) full-year 2025 revenue and EPS results?

Diamond Hill reported 2025 revenue of $147.1 million and diluted EPS of $17.91. According to the company, net income attributable to common shareholders was $48.8 million, reflecting higher investment income year-over-year.

Why did Diamond Hill (DHIL) AUM decline to $31.0B in 2025?

AUM fell to $31.0 billion primarily due to $2.7 billion of net client outflows. According to the company, market appreciation partly offset outflows but total AUM decreased versus 2024.

How did the pending First Eagle merger affect Diamond Hill (DHIL) 2025 results?

Transaction-related expenses of about $2.9 million reduced 2025 margins by ~2 percentage points. According to the company, these costs impacted net operating profit and adjusted margin comparisons year-over-year.

How much cash did Diamond Hill (DHIL) return to shareholders in 2025?

The company returned approximately $44.1 million to shareholders in 2025. According to the company, that included $16.9 million of share repurchases and a $27.2 million dividend tied to a $10.00 per-share payout.

What changed in Diamond Hill (DHIL) profitability margins in 2025 versus 2024?

GAAP net operating profit margin declined to 25% from 29% in 2024, while adjusted net operating profit margin was 29%. According to the company, deferred compensation and transaction costs influenced the margin differences.